In the previous three articles, we took a journey that would be a dream if it were a holiday itinerary: Europe and its uniform legal and regulatory framework for portfolio transfers; then Europe met the U.S., which with small but steady steps is trying to develop its own system for legal finality and insurance business transfers; and finally, we focused on Rhode Island, … [Read more...] about The Legacy Market: Anticipation. Excitement. Commitment. Patience. That Order.
A panel comprised of Eleni Iacovides of DARAG, Vincent Laurenzano and Bernhardt Nadell of Stroock & Stroock & Lavan, Jim Wrynn of FTI Consulting, and Frank Schmid of AIG discussed the various statutory and regulatory provisions governing insurance business transfers. The panel addressed traditional statutory and regulatory procedures for handling impaired and insolvent … [Read more...] about Insurance Business Transfer Statutes
A well-executed watch list process can significantly benefit P&C insurance companies. From the initial establishment of the process, which includes identifying which exposures and claims to include, to the ongoing review of the process as new exposures and claim types emerge, actuarial, claims, and underwriting departments significantly impact the success of a watch list … [Read more...] about Eyeballing Excellence: Establishing and Executing an Effective Watch List Process/Policy
In The Legacy Market article that ran in the Spring 2017 issue, we discussed the various exit and capital release tools available to the European insurance market with each providing different degrees of finality and capital relief. The second Legacy Market article which ran in the Fall issue, discussed the first finality statute available in the U.S. and steps taken by other … [Read more...] about The Legacy Market: Resistance. Protection. Equivalence. Vision. That Order.
Recent developments indicate that U.S. regulators are responding to these market realities. In 2015, Rhode Island passed regulations providing for “insurance business transfers” for commercial P&C runoff business. The Rhode Island Insurance Business Transfer (RI IBT) is modeled on the U.K.’s Part VII Transfer that has been British law for almost 20 years and has resulted in … [Read more...] about Separate but Not Equal
In a world where “strong and stable” equates to weak and uncertain, the European legacy market remains strong and stable (as defined by the Oxford Dictionary), transparent, and continues to deliver Certainty (the capital C is not a typo!) and a cleaner, leaner and stronger balance sheet to each carrier that engages in the process through the implementation of the most … [Read more...] about The Legacy Market: Strength. Stability. Transparency. Certainty. That Order.
On January 13, 2017, the United States and the European Union (EU) concluded negotiations on the first insurance covered agreement after this novel multilateral international agreement, envisioned and promoted by the National Association of Insurance Commissioners (“NAIC”) and the U.S. state insurance regulators who are its members, was authorized by Title V of the Dodd-Frank … [Read more...] about Twisting in the Wind: Covered Agreement Dangling by Uncertainty and Politics
What does that mean?If rumors are to be believed (and there is no reason to think that they should not be), the long running dispute of United States Fidelity & Guaranty Co. v. American ReInsurance Co. (“USF&G v. Am Re”) settled with trial looming.As many will remember, in February 2013, the New York Court of Appeals (the state’s highest court) issued an important … [Read more...] about USF&G v. American Re Settles
The insurance industry has shown through the years that it has a remarkable ability to respond to challenges, and to adopt and adapt, whether this relates to a new financial or regulatory framework or to respond to demands for new products and solutions. One of the biggest challenges that the European industry faced in recent years was the implementation of Solvency II, the … [Read more...] about The Legacy Market: Innovation. Flexibility. Creativity. Capital Appeal. That Order.
At the Commutation & Networking Forum in October, 2016, the authors sat down with Elizabeth Dwyer, Jack Broccoli and Christopher Brennan to talk about the Rhode Island statute. Ms. Dwyer is the Rhode Island Superintendent of Banking and Insurance in the Department of Business Regulation. Jack Broccoli is in the Rhode Island Department of Banking and Insurance and … [Read more...] about Is Reg. 68 Good for the Industry? A Chat with Dwyer, Broccoli and Brennan
Recently Rhode Island revised its Voluntary Restructuring of Solvent Insurers Act as implemented by DBR Regulation 68. This is, in many respects, modeled after the UK’s Part VII Transaction, which, subject to court approval, enables companies to transfer/novate a book of business (and divest itself of all residual liability), to another unrelated insurer that assumes all … [Read more...] about Rhode Island Regulation 68: Voluntary Restructuring of Solvent Insurers Act
On June 23, 2016, the United Kingdom held a referendum on membership in the European Union (EU), which the country had joined in 1973. As a surprise to many, the referendum resulted in a majority favoring an exit. The Brexit vote prompted a change in political leadership in the following month, with Theresa May being appointed Prime Minister. On March 29, 2017, the United … [Read more...] about Brexit Implications for the Runoff Business: A Macroeconomic Perspective
On January 13, 2017, the Secretary of the Treasury (“Treasury”), the U.S. Trade Representative (“USTR”) and the European Union (“EU”) took the industry and regulators alike by surprise when they issued a press release announcing the completion of negotiations and the finalization of the “Bilateral Agreement Between the European Union and the United States of America on … [Read more...] about Does Covered Mean Equal? EU and U.S. Bilateral Agreement on Insurance and Reinsurance
Part 3: The case for expanding the Rhode Island Insurance Business Transfer to other lines of businessCurrent global market conditions have increased pressure on business leaders to focus on efficient capital management with an eye towards long-term trends. Rhode Island’s amendments to Insurance Regulation 68 are the first step in providing greater flexibility to the U.S. … [Read more...] about Can U.S. Insurance Companies Afford Not to Restructure?
While US regulators attempt to require insurers to be more aggressive in protecting consumer data from cyber attacks, in August 2016 the NAIC’S Cybersecurity Task Force released an amended version of its draft Insurance Data Security Model Law.The NAIC model law proposes to establish “uniform” standards for data security and investigations, in addition to how to notify about … [Read more...] about Cybersecurity: What are insurance entities required to do?
Years ago a large global insurer, working to grow its book and establish a presence in a new market, underwrote a large deductible workers compensation account that, under normal circumstances, might have either been rejected or set at a very high premium with substantial collateral to reduce the insurer’s risk.However, neither occurred because the carrier was anxious to … [Read more...] about Your Deal: Large Deductible Programs
The State of Connecticut recently revised its judicial rules to require that any attorney not admitted in Connecticut be admitted pro hac vice prior to appearing on behalf of a client before any state or municipal government agency. As with any pro hac vice admission, out-of-state attorneys will be required to fill out the requisite application and retain local counsel as a … [Read more...] about Pro Hac Admission in Connecticut: Implications for Insurers and Attorneys Alike
In the Spring 2016 issue of AIRROC Matters, we featured Part 1 of a multipart arbitration series by Michael Goldstein and Dan Endick titled, “When Courts Peek Under the Arbitral Veil: The Role of the Courts in Managing Your Reinsurance Arbitration.” Part 2 was “Lifting the Veil on Arbitration Proceedings: Who’s Your Counsel – Disqualification of Counsel by Courts” and it … [Read more...] about Lifting the Veil on Arbitration Proceedings: Who’s Your Arbitrator: Arbitrator Disqualification by the Courts
The purchase of distressed debts is not a new thing. Losses generated in the 1990’s by rocketing APH exposures and the dawn of a new era of litigation saw billions of dollars of additional liability flood the market, and the run-off industry as we know it was born. Today, it is estimated that the value of non-life European run-off stands at around €247bn and this is anticipated … [Read more...] about Trash or Treasure. Are Insolvencies and Reinsurance Asset Sales Inevitable?
Assume you are a reinsurer and you receive a number of arbitration demands. At least one of the demands pertains to a claim (“OLD CLAIM”) where you denied reinsurance coverage nearly 10 years ago. You agree to consolidate the arbitrations.You also name your arbitrator as a precaution because the treaties require that an arbitrator be named quickly and you still have to … [Read more...] about Lessons of ROM v. Continental: Who Decides Whether Claims are Timely and Under What Circumstances?